budget 2017-18committeedocs.northumberland.gov.uk/meetingdocs/25396_m... copyright 2009...
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BUDGET 2017-18
Area Committee MeetingsJanuary 2017
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Context
• The Council’s budget is split into two main parts:– Revenue: which pays for day-today costs such as staff and
equipment– Capital: which pays for major projects such as buildings, schools
and roads• The revenue budget provides both:
– Statutory services: these must be provided by law– Discretionary services – the Council is not legally obliged to
provide these
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Revenue Budget
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Revenue Budget
• The Council’s gross revenue budget for 2017-18 is around £780 million. Some of this budget is made up of grants that can only be spent on specific services. For example, Dedicated Schools Grant and Public Health Grant.
• The net revenue budget is what is left (around £270 million) after these specific grants, and, fees and charges have been taken out. This is funded from a range of sources including General Government grants, Council Tax, retained Business Rates and use of balances.
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National Government Funding Cut
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Cumulative Pressures 2011-12 to 2019-20
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How the Revenue Budget is FundedThe charts below show how the funding of Council’s budget has changed from 2011-12 to 2017-18, with much more emphasis on locally raised income such as Council Tax and Business Rates.
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Original vs Revised Year 2 (2017-18)• The below table summarises how the original
2017-18 budget compares to the updated budget.£000
IncomeGrant reductions 2,861Increased Council Tax (3,703)Reduction in use of reserves 454Total income (388)ExpenditureReduction in inflation (1,368)Increased commitments 2,407Other reductions (651)Total expenditure 388
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MTFP 2017-2020• The below table shows how the original MTFP
compares to the updated MTFP£000
IncomeGrant reductions 4,834Increased Council Tax (11,858)Reduction in use of reserves 6,337Total income (687)ExpenditureReduction in inflation (3,068)Reduction in commitments (6,224)Reduction in savings 9,979Total expenditure 687
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Why has the position improved?• Council Tax income
– Increased taxbase due to new housing– Increased Adult Social Care Precept
• Treasury management– Re-profiling of capital programme– Increased Arch interest income– Reduced cost of borrowing
These improvements mean that the overall savings target has reduced by £10m
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Council Tax• The Council is
proposing to increase Council Tax by 1.99% in 2017-18
• For Band D householders this equates to a 56 pence increase per week
Council Tax Band
2016-17£ p
2017-18£ p
Annual Increase
£ p
Weekly increase
£ p
Band A 970.69 990.01 19.32 0.37
Band B 1,132.48 1,155.01 22.53 0.43
Band C 1,294.26 1,320.01 25.75 0.50
Band D 1,456.04 1,485.01 28.97 0.56
Band E 1,779.60 1,815.01 35.41 0.68
Band F 2,103.17 2,145.01 41.84 0.80
Band G 2,426.73 2,475.02 48.29 0.93
Band H 2,912.08 2,970.02 57.94 1.11
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Summary of EfficienciesEfficiency savings of £6 million are required in order to balance the budget in 2017-18. The proposals can be categorised as follows:
Savings proposals £000Back office savings 1,856Arch ‘dividend’ 1,000Local Services & Housing Review 939Increased income 707Leisure review 500Fire & Rescue review 500Street lighting savings 300Other efficiencies 207Total 6,009
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Capital Programme
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Capital Investment
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New Proposals
• Schools in Morpeth and Ponteland• Leisure centres in Berwick, Blyth and
Morpeth• Multi Storey Car Parks to be built in
Cramlington, Hexham, and Morpeth
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Treasury Management
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Impact of Capital Investment on the Revenue Budget
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Affordability
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Core Achievements and Aspirations
Investments in People• £12m already invested in new schools –
Alnwick, Bedlington and Prudhoe• Further £105m due to be invested in new
schools at Morpeth and Ponteland• £31m five year improvement plan for
updating Council Housing Stock
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Core Achievements and Aspirations
• 1,000 affordable homes already provided, and a further 500 anticipated as part of Garden Village project near Ponteland
• Focus on improving health and well-being of communities, with investment in drug, alcohol and sexual health services
• Plus ever-closer integration with Northumbria Healthcare NHS Foundation
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Core Achievements and Aspirations
Vibrant, Prosperous County• (Anticipated) additional £12m capital
receipt from disposal of County Hall - to invested in county-wide developments as part of Market Towns initiative.
• Move to new HQ itself is anticipated to save residents £16m over 25 years
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Core Achievements and Aspirations
• Development partners Arch are proposing new retail complex at Bedlington
• Hexham House being reborn as £1.5m wedding venue and register office
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Core Achievements and Aspirations
Creative County• £30m investment in multi-storey car parks
at Cramlington, Hexham and Morpeth• Anticipated £20m ‘dividend’ from Arch
over next three years will help offset impact of cuts.
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Core Achievements and Aspirations
• 2016-17 Arch ‘dividend’ enough to pay for 160 social workers and repair 80,000 potholes
• New industrial properties and houses created by Arch will in turn provide additional business rates and Council tax income to support the revenue budget.
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Core Achievements and Aspirations
Friendly County• Tall Ships Regatta Blyth 2016 attracted
400,000 visitors and generated almost £13.5m financial benefit to Northumberland
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Core Achievements and Aspirations
Top priority is health and well-being of residents• £59m investment in new leisure
centres/library complexes for Berwick, Blyth and Morpeth
• £21m already spent on Ashington Leisure Centre.
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Core Achievements and Aspirations
• £3m on improving public parks at Amble, Ashington, Bedlington, Berwick, Blyth, Cramlington, Hexham and Morpeth
• Improvements in highways and infrastructure network, including £30m for the Morpeth Bypass and £5m on next stage of Ashington-Blyth-Tyne rail line.
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Core Achievements and Aspirations
• £27m Morpeth Flood Alleviation scheme completed
• £1m invested in new state-of-the–art gritting lorries
• £7m of Council funding to help deliver superfast broadband
• £25m in LED Street lighting which will save council tax payer £300k per year
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Impact of the Savings
• Equalities– We have a legal duty to consider the impact the proposals might
have on people with protected characteristics. – We publish Equality Impact Assessments alongside the final
budget proposals.• Jobs
– We are the biggest employer in the county and wish to keep the number of compulsory redundancies to a minimum.
– Sadly, some of these proposals will result in a reduction in staff but we’ll do everything we can to keep these as low as possible; primarily through natural turnover.
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Questions?